Rhode Island Council on Postsecondary Education v. Hellenic Society Paideia - Rhode Island ChapterAnnotate this Case
In this case arising from a dispute arising from the parties’ lease agreement, the Supreme Court vacated the order of the superior court denying Defendant’s motion to stay litigation in favor of arbitration, holding that the parties failed to resolve their dispute through amicable mutual discussions pursuant to an arbitration clause in their agreement, and therefore, their dispute was ripe for arbitration.
Plaintiffs leased from Defendant a parcel of land for the purposing of building and maintaining a building. Construction was never commenced, and Plaintiffs demanded that Defendant restore the property to its former condition. Plaintiffs later filed a complaint seeking a declaratory judgment that Defendant was in breach of the lease. Defendant moved for a stay of litigation, arguing that the arbitration clause in the lease required that all disputes be resolved by arbitration. The hearing justice denied the motion, concluding that the lease’s arbitration clause applied only to disputes that did not involve an alleged breach of the lease. The Supreme Court disagreed, holding (1) the language of the agreement provided that alleged breaches of the lease were to be arbitrated provided that the parties attempted and failed to resolve those disputes through mutual discussions; and (2) because the parties attempted conciliation, their dispute was ripe for arbitration.